(Kaieteur News) – The Government of Guyana (GoG) has announced a seven-member board of directors to manage the Guyana Development Bank (GDB) where $20 billion in zero interest and zero collateral loans will be distributed to eligible citizens.
Abu Zaman who currently chairs the Public Accountability and Oversight Committee of the Natural Resource Fund (NRF) has been appointed the inaugural Chairman of the bank, given his senior leadership in Retail and Small Business Banking career which spans over a decade.
Meanwhile, the first female President of the Georgetown Chamber of Commerce and Industry (GCCI) and Vice Chairperson of the Private Sector Commission (PSC), Kathy Smith has been named deputy chairperson of the board.
James Bond, a serving member of parliament for the ruling administration has been appointed director. Bond, an attorney for 24 years is also the senior legal advisor to the Ministry of Public Utilities and Aviation. He is the Managing Director of Bond Optimum and served as chairman of the Adoption Board from 2017 to 2020.
A Financial Analyst, Sukrishnalall Pasha is also a director on the board. He currently serves as Finance Secretary within the Ministry of Finance, Chairman of the Bureau of Statistics and Member of the Board of Governors of the Guyana Revenue Authority and the Council of the University of Guyana.
Dion Inniss, a senior corporate aviation manager with over 25 years of experience in the airline industry has been appointed to serve as Director. The Sales Executive for Guyana and Suriname at Caribbean Airlines Limited, leads commercial strategy and regional stakeholder engagement.
Meanwhile, Director Nalinie Singh, is a governance reform strategist specialising in institutional development, democratic governance and youth political inclusion. Her expertise spans policy analysis, strategic planning, institutional reform, civic engagement, and public administration.
Finally, Praem Rambharak, a former columnist and educator is now a director at the bank. He has been involved in the establishment of multiple SMEs over two decades. He is a member of the President’s Youth Advisory Council and a leader at the intersection of innovation, public service, and youth empowerment.
No independence
Lead Parliamentarian for the A Partnership for National Unity (APNU), Dr. Terrence Campbell told Kaieteur News that he does not believe the board is independent.
“I see no one who is truly independent on the board. I am of the view that the private sector organisation have all been co-opted so notwithstanding the president Ms. Kathy Smith…I do not see this as being an independent board whatsoever,” he shared.
APNU Lead Parliamentarian, Dr. Terrence Campbell
Campbell raised concern over the lack of experienced professionals in law, finance and credit with the exception of a few members.
The MP said, “I do not see any chartered accountants on the board, I do not see a representative of the Guyana Association of Bankers…and last but certainly not least an opportunity was missed to have opposition representation on the board so I’m concerned about the depth and quality of the board to run an institution that’s going to be entrusted with so much state funding.”
Furthermore, he questioned the appointment of a sitting MP to the board, explaining that the Natural Resource Fund (NRF) Act prohibits an MP from being appointed to any of the boards. He suggested that the development bank should follow a similar pattern as this provision ensures that state institutions are not “overly politicised” offering an added layer of assurance to Guyanese.
Leader of the opposition and the We Invest in Nationhood (WIN) party, Azruddin Mohamed also shared similar concerns. He argued that the government has handed US$100 million to a board which has never been involved in operations of such scale.
Opposition Leader, Azruddin Mohamed
He explained that the bank’s operations are extremely risky given that no interest or collateral is involved, requiring “expert oversight” to ensure the resources are not misused. Moreover, Mohamed said the bank is likely to attract first time borrowers, yet only its chairman has worked in the banking sector.
He said, “Nothing in the other bios shows experience in credit-risk management, loan recovery, fraud prevention, or digital lending. That gap matters because the bank’s main lending channel is a mobile platform, which will be a target for fake applications and for borrowers splitting one business into several to get more loans.”
Additionally, the leader noted that although the bank commits to prioritise agriculture, tourism, and hinterland and riverine communities, none of the directors’ bios show experience in rural or agricultural finance or close knowledge of those communities.
According to him, “The Act asks for directors with experience in finance, economics, banking, and law. What the public got is one banker, a lawyer, and five others whose bios show little or no lending experience.”
To this end, Mohamed said the board has one thing in abundance and that is “closeness to the government.”
“One director is a sitting PPP/C Member of Parliament. Another sits on the president’s youth advisory council. A third is the finance secretary, the minister’s own senior official, now sitting on a board the minister appoints, funds, and oversees. When the bank reports to the ministry, he will in effect be reviewing his own decisions,” the opposition leader cautioned.
He reminded that the Minister of Finance hand-picked each of the board members with no input from parliament and no criteria published or positions advertised.
Mohamed observed that the appointees are all tasked with heavy responsibilities outside of the bank, raising questions about whether the institution will get the attention it demands for proper management.
In fact, he said, “A new bank needs full attention, but this board can offer only part-time attention. Several directors lead groups whose members are likely to apply for loans, such as the Small Business Council and the Chamber of Commerce, and one director runs a private company. Yet the government has published no register of directors’ interests, no rule requiring directors to step aside from decisions that involve them, and no limits on lending to businesses connected to them.”
On the other hand, he pointed out that the directors’ salaries have not been made public. The party leader called for government to appoint experienced directors in credit risk and loan recovery, an independent credit committee and opposition and independent nominees, approved by parliament. He also pointed to the need for a published register of directors’ interests, supervision by the Bank of Guyana and publishing of quarterly reports to the public.
Mohamed insisted, “Without these, this bank looks like a lender but carries the risk of a slush fund.”
Source: Kaieteur News
